 "Asian Granito stock rallies 11% on plans to establish new firm in UK")
Shares of Asian Granito rose as much as 11.05 per cent at Rs 77.38 per share on the BSE in Wednesday’s intraday deals. This came after the bathware and tiles manufacturer announced a joint venture agreement (JVA) with Shudh Investments Ltd and Klyn Stone Ltd, both based in the UK, to establish Klyn AGL Ltd in England and Wales.
The company said that the joint venture will focus on selling large porcelain slabs, tiles, and quartz products across the United Kingdom. The agreement includes provisions allowing each party to appoint two directors to the board and subscribe to fresh capital issuances in proportion to their shareholding.
Asian Granito is engaged in the manufacturing of vitrified, wall and floor tiles, composite marble and quartz stone and bathware products
The company currently manufactures tiles under four verticals: Ceramic Polished Vitrified (PVT), Glazed Vitrified (GVT), and Double Charge (DC). It has established its first facility for manufacturing vitrified tiles, with a production capacity of 4,000 square meters per day.
In the recently concluded second quarter of financial year 2024-25 (Q2FY25), The company reported a consolidated net profit of Rs. 4.7 crore for Q2FY25, ending 30th September 2024, compared to a net loss of Rs. 2.8 crore in Q2FY24. Consolidated net sales for Q2FY25 were Rs. 384 crore, down from Rs. 401 crore in the same period last year.
Ebitda for Q2FY25 stood at Rs 15.6 crore, with an Ebitda margin of 4.1 per cent, compared to Rs. 21.1 crore and an Ebitda margin of 5.3 per cent in Q2FY24, reflecting a 1.2 per cent decline year-on-year. Exports for Q2FY25 increased by 26 per cent year-on-year to Rs. 77 crore, up from Rs. 61 crore in Q2FY24.
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The company has a total market capitalisation of Rs 942.10 crore. Its shares are trading at a price to earnings multiple of 45.67 times and at an earning per share of Rs 1.53.
At 11:05 AM; the shares of the company were trading 6.67 per cent higher at Rs 74.33 a piece. By comparison, the BSE Sensex was up 0.14 per cent at 81,622.91 level.